Grandparent lives with daughter and grandchild, receives 3735.00 in dependent flexible spending payment. Household employee? Her home is the same place as daughter.

[g23riel]

Home is in the name of the daughter.  The daughter's husband is the person who has the dependent flexible spending account and files with daughter jointly.  Grandmother, parents and grandchild live in the same place.  

1. Is the grandmother a household employee?  

2. Is this correct that no FUTA, SS, or medicare withholding is needed?

[KarenJ · Accepted solution]

No, your parent does not qualify as a household employee. No social security, Medicare or federal/state unemployment taxes need to be paid (because the employee is her parent).